Switch to:
Pampa Energia SA (NYSE:PAM)
Beneish M-Score
-2.76 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Pampa Energia SA has a M-score of -3.44 suggests that the company is not a manipulator.

PAM' s Beneish M-Score Range Over the Past 10 Years
Min: -5.7   Max: 1.23
Current: -2.76

-5.7
1.23

During the past 12 years, the highest Beneish M-Score of Pampa Energia SA was 1.23. The lowest was -5.70. And the median was -2.89.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Pampa Energia SA for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9323+0.528 * 0.3749+0.404 * 0.874+0.892 * 1.0839+0.115 * 0.6469
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0552+4.679 * -0.1195-0.327 * 0.9504
=-3.44

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $252.9 Mil.
Revenue was 289.422760887 + 138.909217338 + 202.642544909 + 193.438067463 = $824.4 Mil.
Gross Profit was 64.9019446727 + -6.46102140153 + 3.57806068728 + -0.509547130358 = $61.5 Mil.
Total Current Assets was $722.6 Mil.
Total Assets was $2,159.5 Mil.
Property, Plant and Equipment(Net PPE) was $1,064.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $71.6 Mil.
Selling, General & Admin. Expense(SGA) was $218.9 Mil.
Total Current Liabilities was $656.9 Mil.
Long-Term Debt was $500.6 Mil.
Net Income was 41.6049027664 + 159.298385228 + 4.28288822948 + 6.72173003907 = $211.9 Mil.
Non Operating Income was 27.655847713 + 113.126168585 + -16.9696776321 + -22.4241457107 = $101.4 Mil.
Cash Flow from Operations was 11.8792796494 + 140.919029591 + 89.9869180945 + 125.753700545 = $368.5 Mil.
Accounts Receivable was $250.3 Mil.
Revenue was 190.257831899 + 194.362062917 + 192.576077919 + 183.378461538 = $760.6 Mil.
Gross Profit was 13.9011531004 + 2.46988656298 + 5.5790473928 + -0.673723076923 = $21.3 Mil.
Total Current Assets was $644.0 Mil.
Total Assets was $2,212.9 Mil.
Property, Plant and Equipment(Net PPE) was $1,132.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $48.1 Mil.
Selling, General & Admin. Expense(SGA) was $191.4 Mil.
Total Current Liabilities was $774.4 Mil.
Long-Term Debt was $473.7 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(252.930224596 / 824.412590597) / (250.27971473 / 760.574434273)
=0.30680054 / 0.32906669
=0.9323

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(-6.46102140153 / 760.574434273) / (64.9019446727 / 824.412590597)
=0.02797407 / 0.07461002
=0.3749

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (722.649000274 + 1064.19864421) / 2159.53095042) / (1 - (643.977686316 + 1132.00743789) / 2212.93717473)
=0.17257604 / 0.19745344
=0.874

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=824.412590597 / 760.574434273
=1.0839

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(48.1409132052 / (48.1409132052 + 1132.00743789)) / (71.6179367784 / (71.6179367784 + 1064.19864421))
=0.04079226 / 0.06305414
=0.6469

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(218.871877274 / 824.412590597) / (191.361691567 / 760.574434273)
=0.26548828 / 0.25160153
=1.0552

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((500.646740619 + 656.931936456) / 2159.53095042) / ((473.700692767 + 774.388244498) / 2212.93717473)
=0.53603246 / 0.56399655
=0.9504

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(211.907906262 - 101.388192956 - 368.53892788) / 2159.53095042
=-0.1195

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Pampa Energia SA has a M-score of -3.44 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Pampa Energia SA Annual Data

Jun06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.46250.49210.75121.06391.0681.08421.74151.10181.0771
GMI 1.59381.0931.05941.21291.02692.2833-1.559-1.74612.9801
AQI 0.26911.08390.77041.04442.05530.78030.59691.15020.8705
SGI 1186.27912.47460.92681.13621.28590.97680.54750.8620.7625
DEPI 3.20070.50331.08850.91450.77131.16011.22291.05831.0545
SGAI 0.03550.90881.13751.04041.25870.85221.69281.11411.1899
LVGI 4.9181.11490.93571.09661.15431.15641.25151.00430.9267
TATA -0.023-0.0635-0.1047-0.0594-0.0518-0.1496-0.0778-0.1315-0.1087
M-score 1,054.26-1.93-3.32-2.50-2.09-2.54-4.26-4.53-2.14

Pampa Energia SA Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.4431.42461.54961.38281.20591.13051.06811.0290.85020.9323
GMI -0.9654-0.566415.914-2.3556-1.7869-0.6029-0.02790.47781.98720.3749
AQI 0.59690.57160.86880.79621.15021.14481.0730.94410.87050.874
SGI 0.66070.61870.68680.73260.78760.88420.92861.00910.96591.0839
DEPI 0.78690.90461.00441.37591.41611.60311.36940.94960.71060.6469
SGAI 1.681.64591.30181.23151.22251.24891.35411.29841.25021.0552
LVGI 1.25151.28791.18741.14411.00430.86850.8820.92250.92670.9504
TATA -0.072-0.0592-0.1588-0.1804-0.1353-0.1083-0.1334-0.0837-0.136-0.1195
M-score -4.14-3.924.71-5.11-4.52-3.69-3.60-3.17-2.87-3.44
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK